EFG Hermes adds liquidity services to Abu Dhabi exchange

EFG Hermes UAE has launched market-making and liquidity provision services on the Abu Dhabi Securities Exchange (ADX), extending its brokerage operations to support trading activity and improve liquidity in selected listed securities.

The company, regulated by the UAE’s Capital Market Authority, announced the expansion on Friday, saying it would place buying and selling orders under exchange rules and regulatory requirements. The initiative is intended to improve price availability, facilitate transactions and provide additional trading support for companies whose shares are listed on ADX.

The launch follows the introduction of similar services by EFG Hermes UAE on the Dubai Financial Market earlier this week, extending the investment bank’s market-making activities across the UAE’s two principal stock exchanges.

Saker Asllan, Chief Exchange Operations Officer of ADX, welcomed the company into the exchange’s market-maker network, describing liquidity providers as important participants in improving trading conditions and investor access to listed securities.

Asllan said market makers help support liquidity and trading activity while enabling investors to transact more efficiently. ADX expects the additional participant to contribute to its efforts to broaden market participation and strengthen the trading environment.

Ahmed Waly, Global Head of Brokerage at EFG Hermes, said the launch represented an expansion of the company’s brokerage offering and its support for Abu Dhabi’s capital market.

Waly said the services were intended to strengthen trading activity, improve market access and provide listed companies with support beyond their initial public offerings. The company also aims to contribute to market efficiency through more consistent liquidity provision.

Market makers maintain buying and selling interest in designated securities, allowing investors to execute transactions against available quotations. Their participation can reduce the difference between buying and selling prices, known as the bid-ask spread, although the actual impact depends on trading volumes, market conditions and the obligations governing individual securities.

For investors, narrower spreads can reduce transaction costs, particularly when trading shares with limited turnover. Greater order-book depth can also make it easier to execute transactions without substantially affecting prevailing prices.

The company has not disclosed the number or identity of ADX-listed securities covered by its new services. It has also not announced specific liquidity commitments, expected trading volumes or financial targets associated with the initiative.

Liquidity provision is particularly relevant for companies seeking sustained investor participation following a public listing. Shares with limited daily turnover can experience wider pricing differences and greater difficulty attracting institutional investors seeking reliable opportunities to enter or exit positions.

Under ADX’s framework, market-making activities require exchange approval and compliance with applicable operational requirements. Liquidity providers working under arrangements with listed issuers must also satisfy additional conditions, including documentation governing their activities.

Amr El Shamy, Head of Electronic Trading and Execution Services at EFG Hermes, said the operations required robust trading infrastructure, disciplined risk management and the capacity to maintain buying and selling orders throughout market hours.

He said the company’s electronic trading platform had been developed to support efficient execution on ADX, serving institutional and individual investors. Maintaining reliable quotations requires technology capable of responding to changing market prices while managing the risks associated with holding securities.

Raymond Wasef, Head of Market Making and Liquidity Provision at EFG Hermes, said the company’s role would involve maintaining a consistent presence on both sides of the market.

Wasef said more dependable liquidity could help listed companies sustain trading activity while giving investors greater confidence in their ability to buy or sell shares. The effectiveness of such arrangements will depend partly on demand for the securities concerned.

The expansion adds another service to EFG Hermes UAE’s established brokerage, research, execution and investment banking operations. The company already provides electronic trading, direct market access, margin trading and mobile trading services through its ADX membership.

EFG Hermes operates within EFG Holding, whose brokerage business spans several markets across the Middle East and North Africa. The UAE remains an important contributor to the group’s securities trading operations.

EFG Holding’s first-quarter 2026 financial disclosures showed brokerage executions across its markets reached $35.7 billion, representing an annual increase of 8 per cent. The group attributed part of the improvement to stronger execution activity in UAE markets.

The same disclosures showed that the UAE’s two principal exchanges together accounted for 26.6 per cent of the group’s brokerage commission contribution during the quarter, ahead of Egypt and Saudi Arabia.

The new ADX offering will operate alongside the company’s existing trading and execution services, with market-making activity restricted to selected securities and subject to the exchange’s applicable requirements.